Which type of damages is meant to punish the defendant beyond mere compensation for losses?

Punitive damages are specifically designed to go beyond mere compensation for losses incurred by the plaintiff. Their primary purpose is to punish the defendant for particularly egregious or wrongful behavior and to deter similar future conduct. Unlike compensatory damages, which aim to make the injured party whole again by covering actual losses, punitive damages focus on penalizing the defendant and serving as a warning to others.

This form of damages is typically awarded in cases where the defendant's actions are found to be malicious, fraudulent, or grossly negligent. The underlying principle is that some actions are so reprehensible that merely compensating the victim does not address the severity of the wrongful act. Therefore, punitive damages act as a societal tool to uphold standards of behavior and reinforce accountability in legal matters.